Tokyo Gas Shares Rise Sharply After Elliott Builds Stake
Elliott purchased shares almost every trading day in October
Tokyo Gas 9531 12.77%increase; green up pointing triangle shares rose sharply after activist investor Elliott Investment Management disclosed that it built a stake in the Japanese utility company.
Shares rose 12% on Wednesday by midday in Tokyo after jumping as much as 15% earlier.
In a filing released after Tuesday’s market close, Elliott said that it acquired a 5.0% stake in Tokyo Gas for 64.96 billion yen, equivalent to $420 million. The filing showed that Elliott had purchased shares almost every trading day in October.
Elliott said that it might make significant proposals to Tokyo Gas following discussions with company officials.
On Oct. 30, Tokyo Gas announced plans to repurchase up to ¥40 billion worth of its own shares after reporting a drop in revenue and net profit for the first half ended Sept. 30.
The utility company also said it would accelerate the sale of properties and stockholdings to fund growth initiatives or return cash to shareholders.